3 - child care expenses for each hour he works after taxes...

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ECON 4616 In-Class Exercises NAME: Prof. Francisca Antman Exercise 3—Budget Sets with Taxes (Borjas 2-4) Tom earns $15 per hour for up to 40 hours of work each week. He is paid $30 per hour for every hour in excess of 40. Tom faces a 20 percent tax rate and pays $4 per hour in
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Unformatted text preview: child care expenses for each hour he works, after taxes have been deducted from his earnings. Tom receives $80 in child support payments each week. There are 168 hours in the week. Graph Tom’s weekly budget line....
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